Elanor sells Hobart shopping centre

Also today, we are reporting Phillip Hooper sold Coles Tom Ford.

Elanor Investors Group has sold a north Hobart shopping centre for nearly five per cent less than book value.

Glenorchy Plaza occupies 1.19 hectares with three street frontages.

The 19 year old Glenorchy Plaza, anchored to Big W with 13 specialty stores, is trading to a local family office for $19.75 million – an 8.1 per cent passing yield based on the fully let asset’s net income in January, 2024.

Assuming a market return, the return is 7.5pc.

Elanor paid $18.5m in 2015; it was one of the first properties for its now delisted Retail Property Fund which had a c$200m mandate.

The fully leased Glenorchy mall returns c$1.6 million annual rent.

The ASX-listed manager valued the asset in December, 2023, at $20.6m, which assumed a 7.5pc capitalisation rate.

The weighted average lease expiry at the time was 2.1 years.

“With limited retail vacancies coming to the market and very little new stock under construction it’s likely the retail vacancy rates in neighbourhood centres will remain low and rental growth will occur as national tenants continue to expand in Tasmania,” according to George Burbury of Elders Tasmania (which in May bought Knight Frank Tasmania, the agency that listed the asset last year).

Colleague Scott Newton was also on the campaign (story continues below).

The Hearing Australia tenancy at Glenorchy Plaza.

Glenorchy Plaza

On 1.19 hectares at 350-360 Main Road, also fronting Eady and Cooper streets, Glenorchy Plaza contains 8726 square metres.

Essential services groups, amongst them Radiology Tasmania, Hearing Australia and Hobart Pathology, occupy tenancies. There is also a Flight Centre.

The Big W rent is linked to turnover, with that business said to be performing much stronger since the closure of Target at Northgate Shopping Centre in January, 2022.

Glenorchy is 10 kilometres from the CBD.

Also today we are reporting a Coles in the Pilbara’s Tom Ford – the only full line supermarket within a 275km catchment – sold after hitting the market in March.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.